Page 328 - CityofHasletFY25AnnualBudget

D. Prudence

In the administration of the duties of the Investment Officer, the Investment Officer shall
be governed by the prudent investor rule which states: Investments shall be made with
judgment and care, under circumstances then prevailing, which persons of prudence,
discretion and intelligence exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital and the
probable income to be derived. In determining whether an Investment Officer has
exercised prudence with respect to an investment decision, the determination shall be
made taking into consideration:

1. The investment of all funds, or funds under the City’s control, over which the
officer had responsibility rather than a consideration as to the prudence of a
single investment.

2. Whether the investment decision was consistent with the written investment
policy of the City.

The Investment Officer, acting in accordance with written procedures and exercising
due diligence, shall not be held personally responsible for a specific security’s credit risk
or market price changes, providing that these deviations are reported immediately and
that appropriate action is taken to control adverse developments. The City Council
retains ultimate responsibility as fiduciaries of the assets of the City. It should be noted
that in a diversified portfolio, occasional measured losses are inevitable and must be
considered within the context of the overall portfolio’s return.

E. Ethics and Conflicts of Interest

City staff involved in the investment process shall refrain from personal business activity
that could conflict with proper execution of the investment program, or which could
impair the ability to make impartial investment decisions. City staff shall disclose to the
Mayor and City Council any material financial interests in financial institutions that
conduct business with the City and they shall further disclose positions that could be
related to the performance of the City’s portfolio. City staff shall subordinate their
personal financial transactions to those of the City, particularly with regard to timing of
purchases and sales.

An Investment Officer of the City who has a personal business relationship with an
organization seeking to sell an investment to the City shall file a statement disclosing
that personal business interest. The term personal business relationship is defined in
Section 2256.005( i ) of the Act. An Investment Officer who is related within the second
degree by affinity or consanguinity to an individual seeking to sell an investment to the
City shall file a statement disclosing that relationship. A statement required under this
subsection must be filed with the Texas Ethics Commission and the City Council.

City of Haslet Financial Policy

Haslet Adopted Budget FY 2024-2025 326